Answer:
$1,926.97
Explanation:
Given the following :
Loan amount (L) = 8,180
Interest rate (I) = 5.3%
Period (n) = 4 years
Using the formula:
A = L(1 + I/t)^nt
Where A = final amount
t = number of compounding periods per year
A = 8180( 1 + 0.053/12)^(4 * 12)
A = 8180 ( 1 + 0.0044166)^48
A = 8180 * ( 1.0044166)^48
A = 8180 * 1.2355709
A = 10106.970
Final amount after 4 years = 10,106.970
Hence amount Paid as interest over that period will be :
Final amount - Loan amount
10,106.970 - 8,180
= $1,926.97
